Stores still integral despite e-commerce boom, says CBRE
Published: 26 April, 2011
Physical stores remain an integral part of the retail sales mix despite the growth of online retailing, according to the 2011 edition of CB Richard Ellis’s How Global is the Business of Retail?
CBRE has undertaken original research among 320 retailers in 15 countries to assess the current online capability of international retailers, the growth potential of the online sector, and the importance of multi-channel retailing. The research found that although an online platform is now a minimum requirement for retailers seeking international expansion, a physical store is still an integral part of the equation due to the supply-chain difficulties faced by operating via the internet only.
The online capability of retailers is already substantial, with 82 per cent operating an online catalogue.UK shoppers spent more than £5bn online in March, representing a 14 per cent jump on the same time last year.
The UK has the highest proportion of retailers (44 per cent) that deliver goods bought online, followed by Germany, the US, France, and Spain.
Of those retailers that have a physical store presence, 40 per cent are able to deliver online goods in that market – this compares with just 26 per cent of all retailers.
Peter Gold, head of EMEA Cross Border Retail, CB Richard Ellis, said: “The presence of a physical store makes it easier for a retailer to operate an online platform. Not only is the store a place for buying or viewing a product, it is also the location where consumers go to pick-up goods that have been bought online. However, while those with a physical presence are more likely to have an online transactional capability, some retailers such as Topshop in the US or Next in Germany began trading in those markets using internet only and J. Crew recently announced they would be coming to the UK this year – but just with online.
“There is no doubt that e-commerce presents an important sales channel for retailers as it hugely increases a consumer’s awareness of brands and the choice of products available to them; however, retailers are still concerned about how to capture the essence of their brand and whether the internet represents incremental or cannibalised sales. The effective distribution of goods bought online also remains a key challenge; therefore, the extent to which e-commerce will change the fundamentals of retailing remain to be seen.”
